The 2026-27 Budget: California's Fiscal Outlook

Nov 19, 2025 - The 2026-27 Budget: California's Fiscal Outlook Executive Summary Not Safe to Bet Artificial Intelligence ( AI) Fueled Exuberance Is Sustainable. Both the California and U.S. economies currently face significant headwinds.
https://lao.ca.gov/Publications/Report/5091

The 2026-27 Budget: Overview of the Governor's Budget

Jan 12, 2026 - That said, recent budgets have set the SFEU bet ween $3.5  billion and $4.5  billion, so the Governor ’s budget proposal to set the balance to $4.5  billion is generally in line with recent policy.
https://lao.ca.gov/Publications/Report/5101

The 2021-22 California Spending Plan: The State Appropriations Limit

Aug 30, 2021 - The Legislature can use excess revenues in three ways: (1)  appropriate more money for purposes excluded from the state appropriations limit (SAL), (2)  split the excess between additional school and community college district spending and taxpayer rebates, or (3)  lower tax revenues.
https://lao.ca.gov/Publications/Report/4449

The 2023-24 Budget: Considering Inflation's Effects on State Programs

Nov 16, 2022 - Throughout this section, we sometimes discuss spending in terms of its real value. The nearby box describes this term. Real Value The real value of a dollar refers to the amount of goods and services that dollar can buy.
https://lao.ca.gov/Publications/Report/4647

The 2019-20 Budget: Undoing California’s Outstanding Budgetary Deferrals

Mar 26, 2019 - Depositing Money Into Reserves Generates Interest Payments. Money held in the state ’s cash reserves is not idle. The State Treasurer ’s Office (STO) invests state funds, including reserves, in the Pooled Money Investment Account (PMIA), generating an investment return.
https://lao.ca.gov/Publications/Report/3988

The 2025-26 Budget: California's Fiscal Outlook

Nov 20, 2024 - One path is falling interest rates and expansion of money available for lending and investment. A key driver of California ’s economic slump over the last two years has been the Federal Reserve ’s efforts to tamp down inflation by raising interest rates and shrinking how much money is available for lending and investment.
https://lao.ca.gov/Publications/Report/4939

The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - The reason for the reduction is the recent voter approval of Proposition  35 (2024), which requires the state to spend less MCO tax money on offsetting General Fund spending and more money on provider rate increases.
https://lao.ca.gov/Publications/Report/4951

The 2018-19 Budget: Repaying the CalPERS Borrowing Plan

Apr 4, 2018 - By assuming less money comes into the system through investment gains, the state will be required to contribute more money to pay for current and future pension costs as well as a larger unfunded liability.
https://lao.ca.gov/Publications/Report/3797

COVID-19 and California’s Evolving Fiscal Outlook

Mar 18, 2020 - While the stock market provides some real-time information on how capital gains revenues might be affected, overall personal income and corporation tax revenues will depend highly on the type of recession and recovery the state experiences.
https://lao.ca.gov/Publications/Report/4203

The 2018-19 Budget: Governor's Gann Limit Estimates

Apr 6, 2018 - The fundamental purpose of the Gann Limit is to keep real per capita government spending under the 1978 ‑79 level. In order to accomplish this task, the measure required a series of complex calculations to determine the 1978 ‑79 base.
https://lao.ca.gov/Publications/Report/3800